KB News Desk
Lotte Cinema and Megabox, South Korea’s No. 2 and 3 cinema chains, will no longer pursue a merger, Lotte Shopping announced Wednesday.
In the company’s corporate filing released Wednesday, Lotte Shopping said the memorandum of understanding signed with Contentree JoongAng to merge Lotte Cinema and Megabox was terminated on June 30.
Signed on May 8, 2025, the agreement to merge Lotte Cinema and Megabox had attracted attention for potentially reshaping the theater industry. The memorandum of understanding provided few details on how the two companies would establish a joint venture, while it was extended three times — in September, December and April — before ending on Monday.
The word in the industry points to the JoongAng Group’s financial difficulties, with Contentree JoongAng undergoing rehabilitation proceedings, as one reason for the termination.
Lotte Cultureworks, on the other hand, turned a profit in the first quarter of this year, according to Lotte Shopping’s corporate filing released on May 11.
With the merger falling through, Lotte Cultureworks is reportedly planning to focus on upgrading Lotte Cinema’s theaters by installing more recliner seats, adding advanced projectors, and opening more sound-specialized theaters.
The company also plans to expand its content business by securing its own intellectual properties, exporting its immersive theatre productions and producing musicals.
